SB 943: Public utilities: electricity: retail transmission rates: industrial transition usage.

Existing law vests the Public Utilities Commission with regulatory authority over public utilities, including electrical corporations. Existing law authorizes the commission to fix the rates and charges for every public utility and requires that those rates and charges be just and reasonable.

This bill would require each electrical corporation to obtain the commissions approval for the terms of its retail transmission rates. rates, as specified.

This bill would authorize the commission to direct an electrical corporation with more than 100,000 service connections in California, when billing a large commercial or industrial customer for separately metered new load to provide industrial heat, to apply an adjustment factor to the per kilowatthour rate for each volumetrically determined surcharge on energy use to limit the surcharge ratio, as defined, to no more than 25% or an alternative maximum ratio determined by the commission to be just and reasonable and in furtherance of facilitating electrification of industrial energy use. The bill would prohibit an eligible industrial transition customer that pays a reduced surcharge from receiving an incentive funded by that surcharge in an amount that exceeds the amount of the surcharge paid by the eligible industrial transition customer. The bill would require the commission, on or before January 1, 2032, and every 5 years thereafter, to evaluate and report to the Legislature on the adjustment factor, as specified.

Under existing law, a violation of the Public Utilities Act or an order, decision, rule, direction, demand, or requirement of the commission is a crime.

Because the above provision would be part of the act and a violation of a commission action implementing that provision would be a crime, this bill would impose a state-mandated local program.

Existing law establishes the Independent System Operator as a nonprofit, public benefit corporation and requires the Independent System Operator, among other duties, to ensure the efficient use and reliable operation of the electrical transmission grid consistent with the achievement of planning and operating reserve criteria, as provided.

This bill would establish as a policy of the state that allocation of costs to ratepayers for transmission and distribution resources should follow cost causation principles. The bill would require the commission, on or before January 1, 2028, to request the Independent System Operator to reconsider issues raised in its transmission access charge structure enhancements proceeding as potential reforms to its high-voltage transmission access charges. The bill would require the commission to develop recommendations for changes to high voltage transmission access charges that would improve consistency with the commissions causation principles, and to submit the recommendations to the Independent System Operator within a proceeding considering changes to the high-voltage transmission access charge structure.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reason.